Attached is a problem I have worked through, including sensitivity reports, etc. Please work through the additional questions and provide answers and explain for me in sufficient detail for me to do on my own:
1. If Mobile Chair Company could gain 100 additional hours, at no additional cost, in its production department, how much money would it save in meeting its contract requirements?
2. How much could the actual cost of making the electric chair inhouse increase before Mobile Chair would want to change its mix of make inhouse and buy outside?
See the attached file for the full solution.
1. Company could gain 100 additional hours in its production department, however, the cost of production doesn't change at all.
Then we can use the original linear programming method by changing the constraint of production from 10000 to 10100.(0ther things being ...
The solution assists with providing step-by-step details to solve the linear programming problem and determining costs for the Mobile Chair Company.